By FX Empire.com
The EUR/GBP fell hard during the session on Wednesday as traders sold off the Euro in general. The Pound was also helped by a comment out of Bank of England officials suggesting that perhaps more quantitative easing may not be necessary, so a move to the Pound ensued. The fact that the ECB made no mention of further LTRO programs seems to have spooked the markets as well, and it is only expected that this pair would fall in this situation.
As we have reentered the 0.83 to 0.84 consolidation zone, I feel that a break of the lows form Wednesday should be sufficient enough to sell as we head to 0.83 or so. The pair is in a downtrend, so this move is with the flow of the market and we do feel better selling now. A break lower gets us short of this pair.
EUR/GBP Forecast March 1, 2012, Technical Analysis
Originally posted here
